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Contract Surety

Contract surety bonding protects a project owner from financial loss should the bonded contractor fail to fulfill the contract in accordance with it's terms and conditions. Performance bonds are usually packaged with payment bonds.

Bid Bond

Is a bond which provides financial assurance that the bid has been submitted in good faith, that a contractor will enter into a contract at the amount bid, and will provide the appropriate performance and payment bonds. These bonds are used by obligees (project owners) to pre-qualify contractors submitting proposals.

Performance Bond

A performance bond guarantees performance of the terms of a contract. These bonds frequently incorporate payment bonds (labor and materials) and maintenance bonds. Bonding ultimately aims to protect the project owner from financial loss should the contractor fail to perform the contract in accordance with its terms and conditions.

Payment Bond

A payment bond covers payment of subcontractors, laborers, and materials suppliers associated with the project. Payment bonds are issued for the protection of those supplying labor or materials to a particular bonded project.

Maintenance Bond

A maintenance bond guarantee upkeep (maintenance) of the completed project for a specified period of time after completion. These bonds protection from defective workmanship and/or materials.

AIA Standardized Forms

performancebond.com Visit our performance bond site for forms and educational materials about contract surety.
Please devote some time and effort into organizing and submitting your application. Incomplete performance bond submissions do not help you. Informal financial statements (compilations) are only acceptable for very small bond requests. Tax returns are NOT financial statements and are never acceptable in lieu of the same. Clear, professionally prepared contract surety applications GET ATTENTION!

Small Contract Surety

($500,000 Max. Bond Amount)

  • Contract Surety Bond Quick App.
  • Personal financial statement
  • Business financial statementA simple "business financial statement" consists of a your company's current balance sheet and an income statement (also known as a P&L or 'profit and loss' statement). These can be supplemented with a statement of changes in equity, statement of cash flows, CPA notes, etc.
  • Certificate of liability insurance
  • Project specifications & contractWhen we request "project specifications", we mean a COMPLETE copy of a project bid package and a copy of the agreement between a contractor and project owner.

Large Contract Surety

  • Contractor Questionnaire
  • Bid & Performance Bond Request Form
  • Credit release
  • Personal financial statement
  • Business financial statementA simple "business financial statement" consists of a your company's current balance sheet and an income statement (also known as a P&L or 'profit and loss' statement). These can be supplemented with a statement of changes in equity, statement of cash flows, CPA notes, etc.
  • Key personnel resumés/CVsA "key personnel resumé" or 'C.V.' is a brief explanation of an individual's experience, training/schooling, apprenticeship and qualifications to perform a specific type of work.
  • Key personnel life insuranceThis is incredibly self-explanatory
  • Work in Progress Form
  • Project specifications & contractWhen we request "project specifications", we mean a COMPLETE copy of a project bid package and a copy of the agreement between a contractor and project owner.
  • Certificate of liability insurance
  • Line of credit/bank verification

Subdivision Surety Bonds

  • Subdivision Bond Request Form
  • Credit release
  • Personal financial statement
  • Certificate of liability insurance
  • Line of credit/bank verification
  • Business financial statementA simple "business financial statement" consists of a your company's current balance sheet and an income statement (also known as a P&L or 'profit and loss' statement). These can be supplemented with a statement of changes in equity, statement of cash flows, CPA notes, etc.
  • Improvement agreementAn "improvement agreement" is simply the contract between an owner/developer of a subdivision and the municipality to which the subdivision belongs.
  • Engineer estimate with sealsAn "engineer estimate" is a plan prepared by a licensed and/or qualified engineer detailing the work to be performed by an owner/developer of a subdivision, and it's general costs. Engineer estimates should be attested to and bear the engineer's professional seal.
  • Appraisal of projectAn "appraisal of project" is exactly that, . . . an "appraisal" of the project.
  • Copy of platA "copy of a plat" is a map, drawn to scale that shows divisions of a piece of land. Municipal plats show subdivisions divided into blocks with streets, and often breaks blocks down into individual lots.
  • Proof of source of financing"Proof of source of financing" is either evidence in the form of bank account statements, letters of credit, escrow or reserve account statements, proving that funds are 'set aside' for the payment of subdivision improvement labor and materials. Bank financing agreements can also work.

Commercial Contracts

These performance bonds, like those for traditional "sticks and bricks" projects, guarantee that you will fulfill your contractual obligations as per the terms of your contract. Generally, this program is focused on manufacturers, wholesalers and retailers (supply contractors) who sell and install specific products or provide specific services.

Qualifying for and obtaining surety bonds is like applying for a significant unsecured line of credit. If you have never accomplished bonded work or participated in preparing a contract surety bond submission, we really, REAAAAALLY recommend that you read this publication of the Associated General Contractors of America and National Association of Surety Bond Producers.
the "Basic Bond Book"

The following link contains a very short publication of the Surety Information Office (SIO) which clearly explains the bonding process in plain language.
How to Obtain Surety Bonds

PUBLIC PRIVATE PARTNERSHIPS & SURETY BONDING

The American Subcontractors Association in collaboration with the National Association of Surety Bond Producers and the Surety and Fidelity Association of America, have produced the following compendium of P3 laws and current bonding requirements. As the popularity of public private partnerships grows, these laws and the performance bond requirements will change.
Public-Private Partnership Laws in the States